outbreak of the Revolution an arrangement had been entered into with the bankers of four nations for a Currency Loan of 10,000,000 pounds with which to make an organized effort to re-establish internal credit.  But this loan had never actually been floated, as a six months’ safety clause had permitted a delay during which the Revolution had come.  It was therefore necessary to begin the negotiations anew; and as the rich prizes to be won in the Chinese lottery had attracted general attention in the European financial world through the advertisement which the Revolution had given the country, a host of alternative loan proposals now lay at the disposal of Peking.

Consequently an extraordinary chapter of bargaining commenced.  Warned that an International Debt Commission was the goal aimed at by official finance, Yuan Shih-kai and the various parties who made up the Government of the day, though disagreeing on almost every other question, were agreed that this danger must be fought as a common enemy.  Though the Four-Power group alleged that they held the first option on all Chinese loans, money had already been advanced by a Franco-Belgian Syndicate to the amount of nearly two million pounds during the critical days of the Abdication.  Furious at the prospect of losing their percentages, the Four Power group made the confusion worse confounded by blocking all competing proposals and closing every possible door.  Russia and Japan, who had hitherto not been parties to the official consortium, perceiving that participation had become a political necessity, now demanded a place which was grudgingly accorded them; and it was in this way that the celebrated six-power Group arose.

It was round this group and the proposed issue of a 60,000,000 pounds loan to reorganize Chinese finance that the central battle raged.  The Belgian Syndicate, having been driven out of business by the financial boycott which the official group was strong enough to organize on the European bourses, it remained for China to see whether she could not find some combination or some man who would be bold enough to ignore all governments.

Her search was not in vain.  In September (1912) a London stockbroker, Mr. Birch Crisp, determined to risk a brilliant coup by negotiating by himself a Loan of 10,000,000 pounds; and the world woke up one morning to learn that one man was successfully opposing six governments.  The recollection of the storm raised in financial circles by this bold attempt will be fresh in many minds.  Every possible weapon was brought into play by international finance to secure that the impudence of financial independence should be properly checked; and so it happened that although 5,000,000 pounds was secured after an intense struggle, it was soon plain that the large requirements of a derelict government could not be satisfied in this Quixotic manner.  Two important points had, however, been attained; first, China was kept financially afloat during the year 1912 by the independence of a single member of the London Stock Exchange; secondly, using this coup as a lever the Peking Government secured better terms than otherwise would have been possible from the official consortium.